Bayer to Sell Back Double Chin Drug Rights
Bayer HealthCare and Kythera announced that Bayer will sell back to Kythera commercial rights to ATX-101 outside of the United States and Canada. In 2010, Bayer licensed these rights from Kythera. ATX-101 is a proprietary formulation of a purified synthetic version of deoxycholic acid currently in late-stage development for the reduction of submental fat (double chin).
Under the new agreement, Bayer will receive $ 33 million in Kythera common stock, plus a $ 51 million promissory note, payable no later than 2024 from KYTHERA. Bayer is also eligible to receive certain long-term sales milestone payments on annual sales outside of the United States and Canada.
"While we believe ATX-101 will fulfill an unmet global need, Bayer’s strategic focus has evolved since we licensed ATX-101 in 2010," said Erica Mann, global president of Bayer HealthCare’s Consumer Care Division. "Our decision to take an equity position in Kythera is a testament to our belief in the potential for ATX-101, and will allow us to participate in Kythera’s future success."